Beneteau stock soars 14% after beating earnings estimates
Investing.com -- Beneteau 's (EPA: CHBE ) stock surged more than 14% on Tuesday, buoyed by stronger-than-expected financial results that exceeded market estimates.
The French boatmaker’s posted revenues and operating margins surpassing previous guidance, despite ongoing challenges in the broader boating market.
Beneteau’s 2024 revenues came in 4% above consensus estimates and 3% ahead of their own projections, totaling €1.034 billion.
This performance, while representing a 29% decline in sales at constant currencies, was better than anticipated due to a stronger-than-expected fourth quarter.
Revenue in the final quarter of 2024 declined 17% on a constant currency basis, an improvement from previous quarters, suggesting that the market downturn may be stabilizing.
Beneteau’s operating margin was also revised upward, now expected to range between 6.6%, a notable increase from prior estimates of 5%.
The improvement is attributed to cost optimization measures and better-than-expected sales in late 2024.
Despite these positive developments, the company remains cautious about the outlook for the first half of 2025, particularly in the pleasure boat segment, where demand remains uncertain.
Bernstein analysts noted that the catamaran segment, which accounts for roughly 30% of Beneteau’s sales, is expected to be a key area of weakness.
However, the company plans to offset some of this decline through new product launches in the second half of the year, particularly in the entry-level motorboat segment.
Beneteau’s presence at the Düsseldorf Boat Show saw increased sales, despite broader sluggishness in the day-boating category.
The company has yet to provide detailed guidance on the U.S. market but is expected to offer more insight at the Miami Boat Show later this month.
Following the results, Bernstein raised its 2024 earnings per share forecast, reflecting the improved margin outlook.
The brokerage maintained its “outperform” rating on Beneteau, keeping its price target unchanged at €13.40, implying an upside from the pre-earnings share price.